What Are The Benefits Of Car Insurance?
Nothing compares to the pride of having an own car. With your car, you can reach any destination without being dependent on anyone else. But once you own a car, buying a car insurance becomes just as important. In a country like India, driving on roads is laden with perils. Given the poor road conditions and traffic indiscipline, accidents have become a frequent occurrence on Indian roads. A car is undoubtedly one of the most valuable assets you own. Isn’t it your duty to protect your precious car from damages? With Car Insurance policy, you can protect yourself and your car from financial loss and damages. A comprehensive Insurance policy will cover all the damages caused to you, your vehicle as well as the third party damages caused in an accident. You can be assured of all-around safety every time you hit the road. Get All-round protection for your precious vehicle in a few simple steps.
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Benefits of Car Insurance: As per Motor Vehicle Act, a Third Party insurance is compulsory and you must purchase one whether you buy a new or a used vehicle. You may purchase a comprehensive cover as well. The former type of insurance protects you against financial and legal liabilities towards a third party. On the other hand, a comprehensive insurance policy provides cover to your vehicle against damage due to accident, fire, theft, cyclone, flood etc. Along with this cover, it covers any third party liability.
1. Damage or loss to the insured vehicle
In case your vehicle is damaged due to an accident, fire, or self-ignition, you are protected. Furthermore, if the car suffers losses due to burglary or theft, strikes, riots, or terrorism, your insurance policy covers these. Another benefit of car insurance is that it covers loss or damage while in transit by rail, inland waterways, air, road, or lift.
2. Personal accident cover
Another advantage of car insurance is that it offers personal accident cover for a predetermined amount. Personal Accident cover provides protection against permanent total disability, Death due to an accident. Furthermore, this cover can be taken for other passengers on the unnamed basis (maximum as per the vehicle’s seating capacity) for a predetermined amount under the car insurance policy.
3. A large network of garages
HDFC ERGO Car Insurance maintains a large network of garages across the country. This ensures you receive cashless services in all these locations, in case the need arises. This feature makes it convenient to avail of repair services in case of any damage to your vehicle.
4. Third party liabilities
If your car is involved in an accident that results in damage or loss to the property of any third parties, it is covered by the car insurance. Furthermore, if you face any legal liabilities in case of any bodily injury or death of a third party, your car insurance protects you against the same.
5. No claim bonus
One of the major advantages of having car insurance is the no claim bonus (NCB). The customer is eligible for this benefit for every claim-free year. This may be available as a discount on the premium, which makes car insurance even more affordable.
Types of Car Insurance:
There are Two Types of Car Insurance.
1.Third-Party Liability Insurance
A third-party car insurance is a type of four-wheeler insurance that offers financial protection to you in case there were damages or injuries caused by your car to another person or their property.
It is the most basic form of auto insurance coverage in India.
Every four-wheeler owner legally needs a third-party car insurance cover to drive on the Indian roads. This is to ensure that in case of a road accident, the person being harmed by your vehicle is compensated.
2. Comprehensive Insurance
A comprehensive insurance is a combination of third-party liability insurance and own-damage cover. This means that a comprehensive car insurance policy does more than just financially covering you against damages caused by your car to another person or their property. Repairs for the damages caused to your car under circumstances like an accident or natural calamity are also covered by your insurance company. The extent of coverage offered by your insurance company under a comprehensive insurance will depend on the policy terms and conditions.
The benefits of third party liability insurance:
- Covers third-party damage to life and property
- Covers owner/driver disability or death if owner-driver PA cover is obtained.
- Low premium as compared to other insurance policies
- Easy documentation because it does not involve insurance of owner vehicle
The benefits of a comprehensive car insurance are:
- Pays for damages: It is not unusual to hear people who drive in India complain about the traffic woes they face. Traffic indiscipline and road authorities’ inability to enforce the law are major issues. Not a day goes by without the newspaper reporting one or another road accident. As such, damage to your vehicle is very likely. Not only are cars costly, but the repairs are expensive as well. You may be a careful driver but every now and then you will have to sway to avoid a jaywalker. Cricket balls break many a windshield in India, and often enough you discover your car has been damaged or had its accessories stolen while you thought it was parked in a safe spot. Any of these scenarios can lead to considerable expenses. A comprehensive car insurance will come to your rescue in such scenarios.
- Protection against Natural and Man-made calamities: A comprehensive car insurance covers you against natural calamities like earthquakes, floods, lightning, storms etc. It also protects you against man-made calamities like terrorism, malicious acts, sabotage, theft, vandalism, civil disturbances (like a riot that is likely to damage your car).
- Protects you against liabilities: If you are in a car accident, the damage could be to a third party as well. You, as the owner of the vehicle, are legally responsible to pay for damages your car has caused. The insurance will pay for such damages and injuries to other drivers/pedestrians, protecting you from legal repercussions as long as you were not driving under the influence of alcohol or breaking any limitations of use.
- Pays for your hospitalization: Not everyone is lucky enough to get out of a vehicle accident with just minor cuts and bruises. Some accidents may result in fractures and other injuries that require hospitalization. With high inflation in medical expenses, this could lead to a high out of pocket expense. A comprehensive car insurance policy will soften the blow by covering some of these expenses.
- Roadside assistance: Several companies today also provide roadside assistance as a part of their cover. This includes towing your car to the nearest garage, handling complicated repair, unlocking the car in case of losing car keys, changing flat tires etc. This ensures peace of mind for the car owner and his family in case of any unwarranted mishap.
On an average 350+ road accidents take place in India every day. As you’re aware, nothing is bought unless it is made mandatory. Hence IRDAI has made it mandatory to have a car insurance policy under the Motor Vehicles Act. Car Insurance brings financial safety for your car in case of any accidents. Also, third-party liability is one of the main reasons to make car insurance mandatory. Third Party Liability covers liability for the damage caused by you to any other vehicle at the time of the accident.